Voters punish Libs for dumping Turnbull

The Liberal Party is being urged to completely reset its policies and get back to centre ground after its historical loss in Wentworth.

The long-time Liberal seat in Sydney's east, which was vacated by former prime minister Malcolm Turnbull, is now in the hands of independent Kerryn Phelps after she defeated Liberal Dave Sharma.

Former Liberal leader John Hewson says the defeated party needs to rethink and completely reset.

"You can't keep drifting to the right and think you're going to win an election," Dr Hewson told ABC TV on Sunday.

"You have to get back to centre ground."

Dr Hewson, who held Wentworth from 1987 to 1995, said Saturday's results marked the biggest by-election loss in Australian history.

While he believes the best strategy for the now-minority Morrison government is to go through to the next election, he noted voters were fed up with the "self-absorbed, game-playing, point-scoring" behaviour.